A deal has been agreed by HSBC Continental Europe to sell its private banking division to BNP Paribas in Germany.
The possible deal is contingent upon receiving the necessary government clearances and the resolution of discussions with the German Works Council.
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It is predicted that the possible transaction will close in the second half of 2025 and result in a gain on sale.
As part of the deal, about 120 employees as well as the resources and clientele of HSBC Germany’s private banking division would be given to BNP Paribas.
Michael Schleef, CEO of HSBC Germany, said: “We are very pleased that we have found a strategic buyer for our private banking activities in Germany who is well positioned to take the business forward. The transaction will simplify our business model in Germany and will enable us to further focus on our international wholesale banking business.”
Moreover, global fintech platform for alternative investments for wealth management iCapital will provide its technology to HSBC Global Private Banking.
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By GlobalDataWhile it will be first deployed in Hong Kong and Singapore, the solution is intended to be gradually expanded to more markets.
Jan-Marc Fergg, global head of ESG and managed solutions, HSBC Global Private Banking and Wealth shared: “Our thorough understanding of alternative investments and private markets enables us to advise and support our clients in diversifying and enhancing their portfolios to reach their financial objectives. Through this collaboration with iCapital, we are poised to make a broader range of alternative investment opportunities more accessible to our clients.”
Furthermore, earlier this month, the BNP Paribas European SME Debt Fund III (the “Fund III”) reached its final close with a total of €741m ($821m), surpassing its initial target of €600m.
Small and medium-sized enterprises (or “SMEs”) and mid-cap firms in Continental Europe are provided with secured bullet loans by the SME Debt Fund III fund.
With more than €1.7bn invested, BNPP AM’s private debt activity has aided in the expansion of more than 250 businesses since its founding in 2016.
